| Last Version Text |
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<ns0:Id>20250AB__143198AMD</ns0:Id>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-21</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-04-28</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Tangipa</ns0:AuthorText>
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<ns0:Legislator>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Tangipa</ns0:Name>
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<ns0:Title> An act to add and repeal Section 17058.5 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. </ns0:Title>
<ns0:RelatingClause>taxation, to take effect immediately, tax levy</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Personal income taxes: credit: medical services: rural areas.</ns0:Subject>
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<html:p>The Personal Income Tax Law allows various credits against the taxes imposed by that law.</html:p>
<html:p>This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against the taxes imposed by that law to a qualified taxpayer in an amount equal to the qualified income earned by the qualified taxpayer for medical
services, as defined, performed in a rural area in the state, not to exceed $5,000 per taxable year, as specified.</html:p>
<html:p>Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.</html:p>
<html:p>This bill would include additional information required for any bill authorizing a new tax expenditure.</html:p>
<html:p>This bill would take effect immediately as a tax levy.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
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<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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<ns0:ImmediateEffect>YES</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 17058.5 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_B5B259AA-E744-4FA8-83EB-C2A38A7023E4">
<ns0:Num>17058.5.</ns0:Num>
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<html:p>
(a)
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For each taxable year beginning on or after January 1, 2026, and before January 1, 2031, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, in an amount equal to the taxpayer’s qualified income, not to exceed five thousand dollars ($5,000) per taxable year.
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<html:p>
(b)
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For purposes of this section, the following definitions apply:
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<html:p>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
“Medical services” means the diagnosis, treatment, and prevention of illness, injury, or other physical or mental conditions performed by a qualified taxpayer who is physically present while providing those services. “Medical services” includes, but is not limited to, doctor visits, hospital care, surgeries, mental health therapy, and rehabilitative treatments.
</html:p>
<html:p>
(B)
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“Medical services” does not include either of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Elective cosmetic procedures.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Telehealth services.
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<html:p>
(2)
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“Qualified income” means monetary compensation paid to a qualified taxpayer for medical services performed in a rural area in the state by the qualified taxpayer and authorized under the qualified
taxpayer’s license.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Qualified taxpayer” means an individual licensed in the state as any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A dental hygienist licensed pursuant to Article 9 (commencing with Section 1900) of Chapter 4 of Division 2 of the Business and Professions Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A certified nurse-midwife licensed pursuant to Article 2.5 (commencing with Section 2746) of Chapter 6 of Division 2 of the Business and Professions Code.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A chiropractor licensed pursuant to
Chapter 2 (commencing with Section 1000) of Division 2 of the Business and Professions Code.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A dentist, including a dentist that performs oral and maxillofacial surgery, licensed pursuant to Chapter 4 (commencing with Section 1600) of Division 2 of the Business and Professions Code.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
A doctor of podiatric medicine licensed pursuant to Article 22 (commencing with Section 2460) of Chapter 5 of Division 2 of the Business and Professions Code.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
An optometrist licensed pursuant to Chapter 7 (commencing with Section 3000) of Division 2 of the Business and Professions Code.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
An osteopathic physician and surgeon licensed pursuant to Article
4.5 (commencing with Section 2099.5) of Chapter 5 of Division 2 of the Business and Professions Code.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
A physical therapist licensed pursuant to Chapter 5.7 (commencing with Section 2600) of Division 2 of the Business and Professions Code.
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
A physician and surgeon licensed pursuant to Chapter 5 (commencing with Section 2000) of Division 2 of the Business and Professions Code.
</html:p>
<html:p>
(J)
<html:span class="EnSpace"/>
A physician assistant licensed pursuant to Chapter 7.7 (commencing with Section 3500) of Division 2 of the Business and Professions Code.
</html:p>
<html:p>
(K)
<html:span class="EnSpace"/>
A psychologist licensed pursuant to
Chapter 6.6 (commencing with Section 2900) of Division 2 of the Business and Professions Code.
</html:p>
<html:p>
(L)
<html:span class="EnSpace"/>
A registered nurse or nurse practitioner licensed pursuant to Chapter 6 (commencing with Section 2700) of Division 2 of the Business and Professions Code.
</html:p>
<html:p>
(M)
<html:span class="EnSpace"/>
A speech-language pathologist or audiologist licensed pursuant to Chapter 5.3 (commencing with Section 2530) of Division 2 of the Business and Professions Code.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Rural area” has the same meaning as in Section 50199.21 of the Health and Safety Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Any deduction or credit otherwise allowed under this part for any amount of qualified income upon which the credit is based shall be reduced by the amount of the credit allowed under this section.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and for the seven succeeding years if necessary, until the credit has been exhausted.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A qualified taxpayer shall report to the Franchise Tax Board, at the Franchise Tax Board’s request
and in the form and manner specified by the
Franchise Tax Board, any information regarding the credit allowed under this section deemed necessary by the Franchise Tax Board for administration of this section.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For the purposes of complying with Section 41, the Legislature finds and declares both of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The purpose
and specific goal of this credit is to encourage urban medical providers to offer care in underserved rural areas, which would improve access to essential health care services.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Detailed performance indicators for the Legislature to use in determining whether the credits meet that goal are as follows:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The total dollar amount of tax credit allowed pursuant to this section.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The number of taxpayers that were allowed a tax credit pursuant to this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
On or before January 1, 2030, the Franchise Tax Board shall submit a report to the Legislature, in compliance with
Section 9795 of the Government Code, detailing the total dollar amount of tax credits allowed pursuant to this section and the number of taxpayers allowed a credit pursuant to this section.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The disclosure requirements of this paragraph shall be treated as an exception to Section 19542.
</html:p>
<html:p>
(g)
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This section shall remain in effect only until December 1, 2031, and as of that date is repealed.
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<ns0:BillSection id="id_F2D60EEE-577F-4CDB-B8D4-D80075880BF2">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:Content>
<html:p>This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.</html:p>
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|
| Last Version Text Digest |
The Personal Income Tax Law allows various credits against the taxes imposed by that law. This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against the taxes imposed by that law to a qualified taxpayer in an amount equal to the qualified income earned by the qualified taxpayer for medical services, as defined, performed in a rural area in the state, not to exceed $5,000 per taxable year, as specified. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy. |